Social Currency with Sammi Cohen Inside Rhode’s $1 Billion Deal: How e.l.f. Exposed Every Secret Behind Hailey Bieber’s Brand
Nov 28, 2025
A deep dive into the acquisition of Hailey Bieber's Rhode by e.l.f. reveals groundbreaking transparency in financials. Discover the impressive 9x marketing efficiency and why low production costs are key to Rhode's business model. The record launch at Sephora and the brand's unique challenges with limited SKUs are also discussed. Plus, insights on how Rhode's approach to cultural capital compares to Fenty show the evolving landscape of celebrity beauty brands. Hailey’s personal involvement is highlighted as a major asset.
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Unprecedented Profitability For A Young Brand
- Rhode operated with a 19% COGS, 15% delivery, 11% marketing, 17% G&A and a 34% EBITDA margin.
- Those unit economics signal a mature, highly profitable beauty business despite Rhode's youth.
Mature Manufacturing Economics
- A 19% cost of goods sold is unusually low for a young beauty brand and resembles mature conglomerate economics.
- That implies Rhode secured exceptional manufacturing terms or scale early on.
Founder As A Force-Multiplier
- Rhode spent only 11% on marketing and achieved a 9x marketing efficiency ratio.
- Hailey Bieber's organic influence functioned as the brand's primary, extremely efficient customer acquisition engine.